Wednesday, December 3, 2014

* Twitter (TWTR) - Stop the Non-sense; Growth is HUGE... But that's Not the Risk.

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There has been a good deal of confusion surrounding TWTR.  Here are the facts.  TWTR has massive growth. TWTR is spending more on R&D than any firm in the Internet Software & Services Industry by so much that we almost need a different chart for the firm and its peers.  TWTR is a pure play R&D bet -- it will either work, or it will not.

Revenue (TTM)
TWTR growth is huge, with a quadruple in revenue in the last three-years.  Let's stop the non-sense that this "thing" somehow cannot be monetized.

Provided by Capital Market Laboratories

Research & Development (TTM)
TWTR is a pure play R&D bet with expenditures increasing 8-fold in three years.

Provided by Capital Market Laboratories

Revenue (TTM) vs. R&D (TTM)
Let's combine the last two charts into one -- revenue and R&D have exponential trajectories.

Provided by Capital Market Laboratories

R&D vs. Peers
TWTR is the only pure play R&D bet in the Internet Software & Services industry.  If we plot R&D spent per dollar of revenue on the x-axis and R&D spent per dollar of operating expense on the y-axis, there's TWTR... and then there's everybody else.

Provided by Capital Market Laboratories

This is trade analysis, not a recommendation.

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